Blockchain technology has a structure that is quite suitable for the development of cryptocurrency. For the uninitiated, blockchain is nothing but a mechanism of passing information from entity A to entity B in a fast, secured, time-stamped and unadulterated manner. Blocks here are a block of data. The passing of information is initiated at the first block and it is verified by millions of other computers in the network. All the computers are linked to each other and have equal and transparent access to the records created. So, there is distinct immutability in the maintenance of the records.
Crypto currency can be considered as one of the products based on blockchain technology. The currency is nothing but a digital record transacted through blockchains. Once a transaction is made in an initial block, it is transmitted to all the blocks in the network. The use of blockchain in developing crypto currency is offering a number of benefits, such as:
- Complete transparency
All the participating nodes (which are actually the computers in the blockchain network) are aware of the transaction. The process of creating a record is verified by all the blocks, thus, a copy resides in all the participating entities. Therefore, all participants are aware of the transaction reducing the chance of any kind of misconduct to zero.
- Immutability of records
Any of the records generated are time-stamped. Also, there is no way that the change in a completed transaction can be made. If a hacker tries to alter anything in one of the blocks, he actually requires replicating the action in all other participating blocks that are actually numbered in millions. Thus, there is no practical and feasible way of making such a change. The quality of immutability of records makes the transactions through crypto currency quite safe.
Transactions made through blockchain based cryptocurrency are fraud-proof. Because the digital record generated to make use of cryptocurrency actually is blocked and stamped forever, but only after the approval and verification from all the participating nodes in the network. Thus, there is no way a transaction is threatened by fraud or scam.
- Completely de-centralized system of doing transactions
Each node in the blockchain is able to exercise control over the cryptocurrency transactions. The record of the transaction is stored on each and every node allowing transferring of money to happen through a decentralized system. This offers ease of transaction especially to the organizations and businesses that are dependent on the centralized banking system for transferring money. The advantage of de-centralization offers ease and speed in the transaction process too, making it easy to close contracts at the earliest.
Reach to blockchain help to find how the blockchain system can be used to create a crypto currency. One of the most popular crypto currencies till date is Bitcoin. But, this is not the only crypto currency that is possible to develop on the basis of blockchain technology. You can reach a blockchain specialist to get crypto currency developed following the example of a number of other counterparts that have come to picture.